TY - JOUR
T1 - Supplier performance improvements in relational exchanges
AU - Fink, null
AU - Hatten, null
AU - Edelman, Linda
PY - 2007
Y1 - 2007
N2 - Purpose - This study aims to test both customer and supplier performance benefits associated with closer relational exchanges in light of both resource and technological environmental contingencies. Design/methodology/approach - The research involved a survey of 1,170 managers in the pulp and paper industry to understand their relationship with their primary supplier of process control equipment (PCE). Each respondent was asked to provide their views on the closeness of their supplier relationship, the performance gains realized from their supplier relationships, and the linkage between their performance gains and improvements in supplier performance. Findings - The results indicate that although customers may be achieving better performance through closer relationships, suppliers may not always be reaping reciprocal benefits. Specifically, improvements in customer purchasing performance did not result in improved supplier performance, but customer improvements in production performance resulted in supplier performance gains. Research limitations/implications - The study focused on the exchange of one product line, PCE, within one industry. Further research is necessary to investigate customer-supplier relationships involving other products such as parts and material incorporated into the customer's end product and crossing multiple industries. In addition, further research is needed to develop and test other potential performance outcomes and environment contingencies. Originality/value - Since mutual performance improvements may not always be achieved in relational exchanges, this study suggests some critical considerations for suppliers making decisions to pursue closer customer relationships. These important considerations include the competitive nature of the supplier's market, the customer's desired performance improvement, the customer's level of internal expertise or knowledge, and the supplier's ability to provide differentiated products, services and knowledge.
AB - Purpose - This study aims to test both customer and supplier performance benefits associated with closer relational exchanges in light of both resource and technological environmental contingencies. Design/methodology/approach - The research involved a survey of 1,170 managers in the pulp and paper industry to understand their relationship with their primary supplier of process control equipment (PCE). Each respondent was asked to provide their views on the closeness of their supplier relationship, the performance gains realized from their supplier relationships, and the linkage between their performance gains and improvements in supplier performance. Findings - The results indicate that although customers may be achieving better performance through closer relationships, suppliers may not always be reaping reciprocal benefits. Specifically, improvements in customer purchasing performance did not result in improved supplier performance, but customer improvements in production performance resulted in supplier performance gains. Research limitations/implications - The study focused on the exchange of one product line, PCE, within one industry. Further research is necessary to investigate customer-supplier relationships involving other products such as parts and material incorporated into the customer's end product and crossing multiple industries. In addition, further research is needed to develop and test other potential performance outcomes and environment contingencies. Originality/value - Since mutual performance improvements may not always be achieved in relational exchanges, this study suggests some critical considerations for suppliers making decisions to pursue closer customer relationships. These important considerations include the competitive nature of the supplier's market, the customer's desired performance improvement, the customer's level of internal expertise or knowledge, and the supplier's ability to provide differentiated products, services and knowledge.
M3 - Article
JO - Journal of Business & Industrial Marketing
JF - Journal of Business & Industrial Marketing
ER -